We are well into the third quarter of the year already! The start of the year brought nervousness and fear for many people as they tried to gauge what would come of the real estate market in 2023. The market itself has changed quite a bit over the last year which leaves many people feeling uncertain about what to expect or whether they should pull the trigger and move forward on their next real estate adventure.
So, as we close Q2 of 2023 let’s take a look at the real estate market from April to June and how it performed in Oro-Medonte, Severn, Orillia and Ramara.
The ‘Spring Market’ peaked in May and is now levelling off for summer, which is typical for this area. Home sales generally will pick up again as we transition into Fall when kids are back in school and routine for many people settles in once more.
Our list price to sale price ratio hovered consistently between 98%-99%. This means that Sellers were receiving pretty close to what they were asking. What this data doesn’t take into account are the homes that did not sell right away and ended up cancelling their listing in order to re-list it at a lower price point. This ratio would encompass the Seller receiving 98%-99% of that lower price point and not 98%-99% of their original list price.
We saw a 7.8% decrease in average sale price from April to June which is affected by many external factors one of which being mortgage rates and Buyer affordability. With rates continuing to increase, Buyers will continue to feel the financial squeeze making it more difficult for them to qualify for homes they may have formerly been approved for.
CDOM, or cumulative days on market, tracks how long a property has been on the market regardless of whether it was cancelled or expired and then re-listed. It gives a more comprehensive look at the total length of time a property was on the market before it sold. Interestingly, our average CDOM is trending down. We have gone from an average of 53 days for your home to sell in April to 36 days to sell in June signifying there is a demand for homes in the area and there are many serious buyers looking. This can also be related to mortgage rate increases as people hurry to purchase before rates are increased, further limiting their purchasing power.
Overall, the real estate market is active and homes are selling. I find that we have forgotten what an average, more balanced market looks like since the years during the pandemic were so chaotic.
As with any set of statistics, these are averages for our general area. I encourage you to check in with your trusted realtor for details on your specific area if you have questions regarding a future purchase or sale.
